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The 2009 Annual Report of the Board of Trustees of the Social Security Trust Funds was released recently. Here are some of the key findings:

• At the end of 2008, almost 51 million people were receiving benefits: 35 million retired workers and dependents of retired workers, 6 million survivors of deceased workers, and 9 million disabled workers and dependents of disabled workers.
• During the year, an estimated 162 million people had earnings covered by Social Security and paid payroll taxes. Total benefits paid in 2008 were $615 billion. Total income was $805 billion.
• Annual cost will begin to exceed tax income in 2016 for the Social Security trust funds, and the funds "will be exhausted and thus unable to pay scheduled benefits in full on a timely basis in 2037."
• "For the trust funds to remain solvent throughout the 75-year projection period, the combined payroll tax rate could be increased during the period in a manner equivalent to an immediate and permanent increase of 2.01 percentage points, benefits could be reduced during the period in a manner equivalent to an immediate and permanent reduction of 13.3 percent, general revenue transfers equivalent to $5.3 trillion in present value could be made during the period, or some combination of approaches could be adopted. Significantly larger changes would be required to maintain solvency beyond 75 years."
• "The projected trust fund deficits should be addressed in a timely way so that necessary changes can be phased in gradually and workers can be given time to plan for them. Implementing changes sooner will allow their effects to be spread over more generations … . With informed discussion, creative thinking, and timely legislative action, present and future Congresses and Presidents can ensure that Social Security continues to protect future generations."

Copyright © 2009 by Christianity Today/Church Law & Tax Report. All rights reserved.

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